Federal State Relationship
Partnerships with states and municipalities
Improved fiscal situation increases the investment capacity of states. Civil Defense Payment Card available to all states and municipalities
ANOTHER THREE STATES WITH INCREASED FISCAL CREDIT
The increase in fiscal credit limits for Goiás, Santa Catarina and Rio Grande do Norte closed the review of fiscal adjustment programs. The additional limits for the three states total R$2.336 billion, to be invested in infrastructure, sanitation and rural and urban mobility projects.
The review of state fiscal adjustment programs covered 23 of the 25 states participating in the programs. Only three states have not requested new credit operations. The new credit operations authorized for 20 states ensure an additional R$39.37 billion for investments that are essential for Brazil to continue to grow as well as to create more jobs and stimulate regional development. They also express the federative partnership between the Federal Government and states, which strengthens the fiscal soundness of the Brazilian State while creating the conditions for continued growth.
CIVIL DEFENSE PAYMENT CARD AVAILABLE TO ALL MUNICIPALITIES
Since January 31, 2012, the Civil Defense Payment Card may be used by all 5,565 municipalities, as well by all states and the Federal District. As a result, Union funds provided in cases of disasters can be used in a more expedited and transparent manner. The card is used exclusively for the payment of expenses related to relief efforts, assistance to victims and restoration of essential services such as the purchase of drinking water, mattresses and food baskets.
Each state or municipality benefiting from the card should appoint a financial manager and one or more bearers, who will receive their respective cards. Bearers must be civil servants or hold the position of state or municipal secretary. A manual explaining the procedures to use the card is available at www.defesacivil.gov.br.
SANITATION IN SMALL MUNICIPALITIES
PAC 2 is investing R$2.9 billion, with funds from the Federal Government Budget (Orçamento Geral da União - OGU) in sanitation projects in municipalities with population of up to 50,000.
These resources will finance the implementation of systems for water supply, sanitary sewage and sanitary sewage static solutions, in addition to project design. A total of R$2.6 billion will be invested in civil works and R$300 million in projects.
About 3,000 municipalities in all states should be assisted. The number of proposals selected total 3,769, and 1,842 projects had been commissioned by March 2102, totaling R$2.4 billion. The amount of R$1.1 billion in FGTS and FAT funds is also available for loans to small municipalities for basic sanitation projects; 134 proposals for water supply and sanitation have been selected, which will benefit 125 municipalities in 13 units of the federation.
INCREASED CONSTITUTIONAL TRANSFERS
In the first two months of 2012, the State Participation Fund (Fundo de Participação dos Estados - FPE) transferred R$9.6 billion and the Municipal Participation Fund (Fundo de Participação dos Municípios - FPM) transferred R$10 billion to states and municipalities, respectively.
In 2011, transfers from the FPE totaled R$48.07 billion and those from the FPM, R$53.1 billion, after the amounts earmarked for FUNDEB. This result translates into a 23.2% increase in the FPE and 23.3% in the FPM, compared to 2010 results.